Rochdale's Dick Bove went on a tirade this morning on CNBC's "Squawk on the Street" claiming the joint state-federal mortgage settlement, which he dubbed in a note earlier as "the mortgage deal from hell," unfairly impacts those homeowners who pay their bills.

"If you're going to do something which is going to reduce the value of existing homes where people are making their payments, every American should stop making his payments on his mortgages, send a letter to the Attorney General in his state and say 'I qualify to have my principal reduced because I'm not going to make any more payments on my house,'" Bove said.

"These people were not making payments on these houses in the first place and, therefore, they're not getting the new flow of cash ... they're not getting anything other than the government has decided to pay everyone who cheated on their mortgages 2,000 bucks, right. The second thing is, you are going to be reducing the prices of a lot of houses in the United States where payments are being made because the house next door is seeing the principal balance on the mortgage taken down," he explained.

"This is not a stimulus to the United States economy. It depresses the United States economy."

"Most of the big banks have set aside reserves [for] this payment. ... The bulk of the mortgages that are thrown into this agreement have already been written down and the principal has already been forgiven ... It's unlikely that there'll be a major earnings impact."